Major Changes in the Stablecoin Market Landscape: USDC's Market Share Soars, Rising Star USDe Rapidly Emerges

Stablecoins are reshaping the global financial system at an unprecedented pace. According to the recently released "2025 Stablecoin Status Report," the stablecoin market has seen significant growth over the past year, with accelerated institutional adoption, the rise of decentralized stablecoins, and increasing on-chain trading activity.

Market Size and Growth Trends

As of February 2025, the supply of stablecoins has reached $214 billion, with an annual transaction volume of up to $35 trillion, double that of a well-known credit card company's annual transaction volume. Market activity is rising simultaneously, with the number of active on-chain addresses increasing by 53%, surpassing 30 million. Institutional funds are flowing in on a large scale, driving the deep integration of traditional finance and the crypto market.

Changes in the Dominance of USDC and USDT

Driven by the compliance process and market strategies, USDC and USDT still dominate, but there are subtle changes in market share.

• USDC's market cap doubled to $56 billion, mainly due to regulatory approvals, the addition of important strategic partners, and the rapid expansion of the global market.
• The total market value of USDT has increased to 146 billion USD, still the largest stablecoin by market capitalization, but its market share has declined, with institutional adoption decreasing, gradually shifting focus to the P2P remittance market, consolidating its position in the global payment sector.

The Rise of Decentralized Stablecoins

In the decentralized finance ecosystem, the influence of decentralized stablecoins has significantly increased, with several emerging projects achieving breakthrough growth.

• USDe: The market value surged from $146 million to $6.2 billion, becoming the third-largest stablecoin in the market. The key to its growth lies in its innovative yield strategy and Delta-neutral hedging mechanism.
• USDS: A compliance-friendly stablecoin launched after a well-known decentralized autonomous organization rebranded, with a market value reaching 2.6 billion USD by February 2025. This adjustment has enhanced its competitiveness in the decentralized stablecoin market.

Capital Flow and Industry Distribution

The liquidity trends of stablecoins reflect the positioning and competitiveness of different public chains in the market:

• Ethereum remains the main issuance platform for stablecoins, accounting for 55% of the supply share.
• A certain Layer 2 network and a certain high-performance public chain have seen rapid growth in transaction volume, driven by the DeFi and Meme coin markets, and have become an important on-chain ecosystem for the circulation of stablecoin funds.
• A well-known public chain continues to occupy a core position in the global P2P payment and cross-border remittance market, especially in emerging markets, where stablecoins are widely used for payments and savings.

Most stablecoin liquidity is mainly concentrated in centralized exchanges, and trading volume is primarily driven by DeFi (decentralized exchanges, lending, yield farming), reflecting the efficient flow of funds and innovation.

Core Functions and Future Development

Stablecoins have become a key infrastructure in the cryptocurrency market, while also driving innovation in the traditional finance sector. Industry experts are optimistic about the future development of stablecoins:

A general partner from a well-known investment institution stated: "Stablecoins are the lifeline of the crypto market and a superconductor for the financial system. They open up new markets and financial opportunities, driving innovations that were previously hard to reach."

A product leader of a Layer 2 network believes: "Stablecoins have significant advantages in cross-border payments. We hope to support more local currency stablecoins, allowing global users to trade on-chain with familiar currencies, increasing the adoption of blockchain technology."

The head of research for a new emerging stablecoin project emphasized: "The next generation of stablecoins must have market resilience. Our core is a yield-supported stability mechanism to ensure users receive a reliable alternative to the dollar."

A data analysis expert pointed out: "The flow of stablecoins depends on the quality of infrastructure—low cost, fast transactions, and market demand. On a high-performance public chain, the trading pairs of Meme coins have extremely high liquidity and instant settlement requirements, making stablecoins an indispensable part."

A spokesperson for a public blockchain community summarized: "We have become the preferred blockchain for stablecoin trading, with daily transaction volumes reaching tens of billions of USD. A well-known stablecoin has driven real economic activity on our network, especially in emerging markets, where it has become a key tool for payments and savings."